As HDFC bank and its merger with HDFC make the headlines in the last few weeks, its chairman Deepak Parekh resigned and shared an emotional note with employees. In the letter, Mr Parekh said it was "time to hang my boots".
Soon, a post claiming to be Parekh’s first offer letter at HDFC went viral. Dating back to July 19, 1978, the letter details Parekh’s salary and terms of the employment contract.
However, an offer letter dated July 19, 1978 has surfaced online, which reveals Parekh salary details when he joined HDFC 45 years ago! Parekh joined his uncle’s firm HDFC Limited as a Deputy General Manager in 1978. According to the offer letter, Parekh was offered a basic salary of ₹3,500 plus ₹500 as a fixed Dearness Allowance. He was also entitled to 15 per cent Housing Rent Allowance and a City Compensatory Allowance at 10 per cent.
The 78-year-old, who joined his uncle’s firm, was also offered the corporation's Provident Fund, gratuity, medical benefits, leave travel facilities, and reimbursement of residential phone expenses.
HDFC Bank and HDFC merger
HDFC Ltd, the parent of the country's largest private sector lender, merged into HDFC Bank on July 1st, with boards of both entities clearing the plan first presented on April 4 last year. HDFC Ltd, the largest pure-play home financier, ceases to exist 44 years after it was founded.
The USD 40-billion merger, the largest such deal in Indian corporate history, is driven by a changing regulatory landscape, which limited the advantages for HDFC continuing as a non-bank lending entity.
Post-merger, HDFC Bank will become the fourth most valued lender in the world, and narrow the gap by asset size with state-owned SBI to be the second largest Indian bank.
The total business of the merged entity stood at Rs 41 lakh crore at the end of March 2023. With the merger, the networth of the entity would be over Rs 4.14 lakh crore.
The combined profit of both entities was to the tune of about Rs 60,000 crore at the end of March 2023.